COTTONWOOD HEIGHTS, Utah, Oct. 23, 2017 — Dynatronics Corporation (NASDAQ:DYNT) today announced that it has signed an exclusive distribution agreement (“Strategic Alliance”) for the United States with Zimmer MedizinSysteme GmbH (Zimmer) for select therapy equipment.
Under the terms of the agreement, Dynatronics will be the exclusive U.S. distributor for Zimmer’s ThermoProTM (Shortwave Diathermy), enPulsTM (Radial Pulse Therapy), and OptonProTM (Class IV Laser) products. Combining Dynatronics’ existing modalities with these Zimmer products will provide Dynatronics customers in the U.S. with a complete range of modality products. Principally operating outside the U.S., Zimmer is the leading manufacturer of physical rehabilitation modalities in Germany, and one of the top three manufacturers of therapeutic modalities in Europe. Dynatronics has been operating as a distributor for Zimmer for the last nine months on a non-exclusive basis, building its base of experience and confidence in the products during that period.
Jeff Gephart, Senior VP of Sales at Dynatronics, stated, “Dynatronics is pleased to provide such a high quality product line to our customers. We are always seeking to improve outcomes for our customers, and this new partnership highlights that commitment. We look forward to building this segment of our business more rapidly.” Mr. Gephart continued, “Zimmer’s choice of Dynatronics underscores the value of the distribution presence that Dynatronics continues to build in the U.S. Over the last two years we have made significant investment in our sales force through increased training, and marketing support to better reach our customers.” The Zimmer product line will be sold through both the Dynatronics direct sales force and dealer channel.
According to Armin Zimmer, Zimmer’s CEO, “We are excited to have Dynatronics as our exclusive distribution partner in the U.S. Dynatronics has developed a great reputation in the market as a leading manufacturer of physical therapy modalities. We are committed to expanding our North American footprint and are confident in Dynatronics’ ability to lead that effort through this Strategic Alliance. We were also quite excited to participate in Dynatronics’ recent equity placement. Our $500,000 investment in Dynatronics will support additional investment in the Company’s distribution footprint, and is a vote of confidence in the Company’s acquisition strategy and very bright future in physical medicine.”
Previously, Dynatronics acted as a non-exclusive distributor of these types of products for several other manufacturers. Currently, Dynatronics sales account for less than 2% of the relevant U.S. market opportunity for these products, which is estimated to be over $100 million. With this new proprietary product line, Dynatronics is better positioned to capture market share and improve gross margin.
About Dynatronics
Dynatronics designs, manufactures, markets, and distributes advanced-technology medical devices, therapeutic and medical treatment tables, rehabilitation equipment, custom athletic training treatment tables and equipment, institutional cabinetry, as well as other rehabilitation and therapy products and supplies. Through its various distribution channels, the company markets and sells its products to physical therapists, chiropractors, athletic trainers, sports medicine practitioners, and other medical professionals and institutions. More information is available at www.dynatronics.com.
About Zimmer MedizinSysteme
Zimmer MedizinSysteme GmbH manufactures, markets and distributes, medical devices and aesthetics products for the physical therapy, athletic training, sports medicine, and related physical medicine markets. More information is available at https://zimmer.de/en/.
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SOURCE Dynatronics Corporation
